If Hiko Energy hiked your variable electric rates, you may be getting a refund

Emily Robson / THE MORNING CALL

Emily Robson / THE MORNING CALL

Paul Muschick

Hiko Energy to refund customers after state investigation

Customers of Hiko Energy who believe they were fleeced when their variable electric rates rose higher than they were promised may be getting refunds under a tentative settlement announced Monday.

Hiko was accused of deceptively marketing its variable electric rates to Pennsylvania consumers, many of whom filed complaints about spikes in their rates during the winter of 2014.

Under the settlement with the state attorney general's office and Office of Consumer Advocate, Hiko has agreed to pay $1.6 million in refunds to eligible consumers who were enrolled in a program under which Hiko guaranteed savings of between one and seven percent. It would pay another $352,000 to other customers on variable rate plans.

Hiko was one of several electricity suppliers probed by state authorities after sudden and drastic increases in their variable rates from January to March 2014, during a period of extended cold that came to be known as the "polar vortex." When power use rose as heaters ran extra hard, wholesale power prices jumped, driving up prices for retail suppliers such as Hiko, many of which passed them on to their customers.

The settlement is pending approval by the state Public Utility Commission and administrative law judges. More details about the proposed settlement and who may be eligible can be found here.

The agreement does not impact a separate proceeding against Hiko that was brought by the PUC's investigative branch on many of the same grounds. That case remains pending.